SHRI SHASHI KANT KHETAN, JHUNJHUNU V. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE, JHUNJHUNU

ITA 353/JPR/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9411 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 15-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RUNI PAL DCIT
• Assessee Lawyers: SUSTAINING AN
• Keywords: Depreciation; Question of law
• Section: 143(3); 142(1); 145(3)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES B, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; ,OA JH LANHI XLKA ] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI SANDEEP GOSAIN, JM VK;DJ VIHY LA -@ ITA NO. 353/JP/2019 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : 2015-16 SHRI SHASHI KANT KHETAN, H-3, INDRA NAGAR, JHUNJHUNU. CUKE VS. D.C.I.T., CIRCLE, JHUNJHUNU. LFKK;H YS[KK LA -@THVKBZVKJ LA -@ PAN/GIR NO.: AEHPK 0657 G VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS @ ASSESSEE BY : SHRI VIJAY GOYAL (FCA) JKTLO DH VKSJ LS @ REVENUE BY : SMT. RUNI PAL (DCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 17/08/2020 MN?KKS 'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 18/08/2020 VKNS'K@ ORDER PER: R.C. SHARMA, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF LD.CIT(A)-IV, JAIPUR DATED 31/01/2019 FOR THE A.Y. 2015-16 IN THE MATTER OF ORDER PASSED U/S 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT, THE ACT). 2. THE HEARING OF THE APPEAL WAS CONCLUDED THROUGH VIDEO CONFERENCE IN VIEW OF THE PREVAILING SITUATION OF COVID-19 PANDEMIC. IN THIS APPEAL, THE ONLY GRIEVANCE OF THE ASSESSEE RELATES TO UPHOLDING THE AD HOC DISALLOWANCE OF RS. 10.00 LACS OUT OF CONTRACT EXPENSES. ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 2 3. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT THE ASSESSEE IS IN THE BUSINESS OF CONTRACTOR. THE ASSESSEE FILED HIS RETURN OF INCOME ON 30/10/2015 DECLARING TOTAL INCOME OF RS. 46,86,640/-, WHICH WAS ASSESSED BY THE A.O. AFTER MAKING VARIOUS ADDITIONS AT RS. 84.21 LACS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. MADE AD HOC DISALLOWANCE OF VARIOUS EXPENSES. BY THE IMPUGNED ORDER, THE LD. CIT(A) HAD UPHELD THE AD HOC DISALLOWANCE OF RS. 10.00 LACS, AGAINST WHICH THE ASSESSEE IS IN FURTHER APPEAL BEFORE THE ITAT. 4. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND CAREFULLY GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW AND FOUND FROM THE RECORD THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAD SHOWN NET PROFIT OF 10.41% ON THE GROSS CONTRACT RECEIPTS. HOWEVER, IN THE A.Y. 2013-14, THE TRIBUNAL VIDE ITS ORDER DATED 24/01/2018 HAVE DELETED ALL THE DISALLOWANCES SO MADE BY THE A.O.. THE PRECISE OBSERVATION OF THE TRIBUNAL WAS AS UNDER: 7. THE BENCH HAVE HEARD BOTH THE SIDES ON THESE ISSUES. ALTHOUGH, THE ASSESSEE HAS MAINTAINING THE BOOKS OF ACCOUNT, WHICH WAS ACCEPTED BY THE ASSESSING OFFICER IN A.Y. 2011-12 & 2012-13, HOWEVER, CONSIDERING THE VARIOUS ASPECTS RECORDED BY THE AUTHORITIES BELOW, THE BENCH ARE OF THE VIEW ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 3 THAT THE REJECTION OF BOOKS OF ACCOUNT IS JUSTIFIED. HOWEVER, WITH REGARD TO CLAIM OF ESTIMATION OF NET PROFIT OF BUSINESS OTHER THAN THE GRIT BUSINESS, THE BENCH FIND THAT THE LD. CIT(A) HAS RELIED ON THE FINDINGS OF THE ITAT IN THE CASE OF A.Y. 2010-11. HOWEVER, IN THE DECISION FOR THE A.Y. 2011-12, THE ITAT HAS FOUND THAT THE DECLARED PROFIT OF THE ASSESSEE WAS MORE THAN 8% OF THE GROSS RECEIPTS SUBJECT TO DEDUCTION ON ACCOUNT OF DEPRECIATION AND INTEREST, THEREFORE, THE ADDITION WAS DELETED. IT IS ALSO ESTABLISHED THAT THE FACTS WITH REGARD TO THE CLAIM OF DEPRECIATION FOR A.Y. 2011-12 AND FOR THE ASSESSMENT YEAR UNDER CONSIDERATION WERE DIFFERENT FROM THE FACTS OF A.Y. 2010-11, FOR THE REASON THAT THERE IS A HUGE INCREASE IN THE CLAIM OF DEPRECIATION ON ACCOUNT OF PURCHASE OF NEW PLANT AND MACHINERY. IN THE A.Y. 2010-11, THE CLAIM OF DEPRECIATION WAS 58,97,727/- WHILE IN THE YEAR UNDER CONSIDERATION, IT WAS 85,46,112/-. FURTHER THE GROSS PROFIT RATE OF ASSESSEE OF LAST FEW YEARS ARE SUMMARIZED AS UNDER: AY TOTAL TURNOVER GROSS PROFIT GP RATE 2013-14 15,82,78,563 1,39,60,383 8.82% 2012-13 15,62,50,053 1,36,71,879 8.75% 2011-12 15,50,02,341 1,27,29,257 8.21% THUS, THE G.P. RATE FOR THE YEAR UNDER CONSIDERATION WAS BETTER THAN THE EARLIER TWO IMMEDIATE PRECEDING YEARS. THE HONBLE RAJASTHAN HIGH COURT AND THE COORDINATE BENCHES OF THE ITAT, JAIPUR HELD IN THE VARIOUS CASES THAT THE NET PROFIT @ 8% OF GROSS RECEIPTS SUBJECT TO FURTHER DEDUCTION ON ACCOUNT OF DEPRECIATION AND INTEREST ARE HELD TO BE REASONABLE. SUCH VIEW HAS BEEN HELD BY THE HONBLE ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 4 RAJASTHAN HIGH COURT IN THE CASE OF CIT VS JAIN CONSTRUCTION CO & ORS. (2000) 245 ITR 527 (RAJ). THE RELEVANT PORTION OF THE HON'BLE HIGH COURTS ORDER IS AS UNDER: THE DIVISION BENCH OF THIS COURT IN CIT V. S.M. BHATIYA ASSOCIATES (1997) 226 ITR 675 HAS HELD THAT THE FINDING RECORDED BY THE TRIBUNAL ON APPRECIATION OF EVIDENCE AVAILABLE ON RECORD, IS A FINDING OF FACT AND DOES NOT GIVE RISE TO THE QUESTION OF LAW FOR REFERENCE UNDER SECTION 256(2) OF THE ACT, AND THEREBY REJECTED THE APPLICATIONS SEEKING REFERENCE OF SIMILAR QUESTIONS. IN THE INSTANT CASE, THE TRIBUNAL WHILE ALLOWING THE APPEAL HAS DIRECTED THE ASSESSING AUTHORITY TO RECOMPUTE THE TOTAL INCOME AS ESTIMATED BY HIM AND ALLOW RELIEF ON ACCOUNT OF PAYMENT OF INTEREST AND CLAIM OF DEPRECIATION. THE FINDING RECORDED BY THE TRIBUNAL IS PURELY A FINDING OF FACT, BASED ON PROPER APPRECIATION OF MATERIAL ON RECORD AND THE EVIDENCE PRODUCED BY THE ASSESSEE. AS NO QUESTION OF LAW ARISES OUT OF THE ORDER PASSED BY THE TRIBUNAL, WE FIND NO FAULT WITH THE ORDER OF THE TRIBUNAL DECLINING TO REFER THE QUESTION FOR OUR OPINION. CONSEQUENTLY, ALL THE APPLICATIONS FILED UNDER SECTION 256(2) OF THE ACT FILED BY THE REVENUE ARE HEREBY REJECTED. IN ASSESSEES CASE, THE NET PROFIT RATE SUBJECT TO DEDUCTION OF DEPRECIATION AND INTEREST COMES @8.09% OF THE GROSS RECEIPTS, WHICH IS MORE THAN 8%. THE WORKING OF THE SAME AS UNDER: PARTICULARS AMOUNT AMOUNT PROFIT SHOWN BY ASSESSEE AS PER P & L A/C PB PG 11 36,56,252 LESS:- PROFIT FROM SALE OF FIXED ASSETS 6,28,379 PROFIT FROM CONTRACT AND GRIT BUSINESS 30,27,873 ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 5 ADD DEPRECIATION 85,46,112 INTEREST PAID 39,20,689 RECEIVED -15,48,252 NET INTEREST PAID 23,72,437 TOTAL BUSINESS PROFIT BEFORE INTEREST AND DEPRECIATION 1,39,46,422 GROSS RECEIPTS AGAINST CONTRACT 9,64,53,345 GROSS RECEIPTS AGAINST GRIT (AS TAKEN BY AO) 7,58,25,218 TOTAL RECEIPTS 17,22,78,563 % OF PROFIT ON GROSS RECEIPTS 8.09% IT IS ALSO PERTINENT TO NOTE THAT WHEREVER EVEN BOOKS OF ACCOUNT ARE REJECTED BY THE ASSESSING OFFICER THEN ALSO NO TRADING ADDITION IS REQUIRED TO BE MADE AS HELD BY THE HON'BLE RAJASTHAN HIGH COURT IN THE CASE OF CIT VS GOTAN LIME KHANIJ UDHYOG (2002) 256 ITR 243 (RAJ) AND J.C. SHARMA VS ITO 33 TAXWORLD 80 ITAT JAIPUR BENCH. IN ASSESSEES OWN CASE FOR THE A.Y. 2011-12, THE COORDINATE BENCH OF THE ITAT, JAIPUR HAS HELD AS UNDER: 2.5 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THIS CASE, THE AO OBSERVED THAT THE ASSESSEE HAD DEBITED A SUM OF RS. 14,00,93,774/- TO THE P&L ACCOUNT UNDER THE HEAD CONTRACT FOR WHICH THE AO REQUIRED THE SPECIFIC QUERY WITH REGARD TO SUCH CONTRACT EXPENSES VIDE NOTE U/S 142(1) DATED 5-09-2013 WHICH WAS REPLIED BY THE ASSESSEE VIDE ITS LETTER DATED 24-10-2013. THE AO CONSIDERED THE REPLY OF THE ASSESSEE AND FOUND IRRELEVANT TO THE QUERIES RAISED IN SHOW CAUSE NOTICE DATED 11-02-2014. THE AO IN THE ASSESSMENT ORDER THAT THE ASSESSEE HAD NOT PRODUCED THE BOOKS OF ACCOUNT, NO DAY TODAY CONSUMPTION OF MATERIAL WAS PRODUCED, NO WORKWISE AND HEADWISE DETAILS OF THE EXPENSE HAS BEEN PRODUCED AND NO EVIDENCE IN THE FORM OF BILLS/ VOUCHERS HAD BEEN PRODUCED. THE AO ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 6 THUS INVOKED THE PROVISIONS OF SEC 145(3) OF THE ACT. THE AO ALSO OBSERVED THAT THE ASSESSEE ON ITS PART HAD DONE ABSOLUTELY NOTHING TO EITHER SUBSTANTIATE ITS OWN POSITION OR TO FURNISH REASONABLE EXPLANATION FOR THE QUERIES RAISED. THE AO THUS IN THE PRESENT SET OF FACTS MADE A DISALLOWANCE OF 3% ON TOTAL CONTRACT EXPENSES OF RS. 14,00,93,774/- WHICH WORKS OUT TO RS. 42,02,813/-. HOWEVER, THE LD. CIT(A) GAVE A RELIEF OF RS. 8,02,363/- TO THE ASSESSEE BY SUSTAINING AN ADDITION OF RS. 34,00,450/-. IT IS PERTINENT TO MENTION THAT THE ITAT COORDINATE BENCH IN ASSESSEE'S OWN CASE FOR THE ASSESSMENT YEAR 2010-11 VIDE ITS ORDER DATED 24-09-2015 IN ITA NO.918/JP/2013 APPLIED THE N.P. RATE @ 5.1% ON THE TURNOVER OF RS. 14,71,70,861/- BY OBSERVING AS UNDER:- 6. WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. THE ASSESSEE HAS SHOWN TOTAL TURNOVER DURING THE YEAR AT RS. 14.71 CRORES ON WHICH NET PROFIT HAS BEEN SHOWN @ 5.02%, WHICH WAS RS. 27.98 CRORES AND NET PROFIT RATE @ 5.77% IN IMMEDIATE PRECEDING YEAR. THE ASSESSEE CLAIMED THAT HE PRODUCED THE BOOKS OF ACCOUNT BUT THE ASSESSING OFFICER WAS NOT AVAILABLE IN THE OFFICE BUT BOOKS WERE EXAMINED BY THE INSPECTOR ON BEHALF OF THE ASSESSING OFFICER. THE LD ASSESSING OFFICER APPLIED SECTION 145(3) AND REJECTED THE BOOK RESULT ON THE GROUND THAT REQUIRED DETAILS OF CONTRACT EXPENSE WERE NOT SUBMITTED BEFORE HIM. THEREFORE, WE CONFIRM THE ORDER OF REJECTION U/S 145(3), WHICH HAS NOT BEEN CHALLENGED BY THE ASSESSEE. HOWEVER, ESTIMATE MADE BY THE LD ASSESSING OFFICER AND CONFIRMED BY THE LD CIT(A) IS HIGHER SIDE, WHICH WOULD GIVE NET PROFIT RATE OF 12.84% BEFORE DEPRECIATION, WHICH IS NOT POSSIBLE IN CONTRACT BUSINESS. IT IS ALSO FACT THAT REQUIRED DETAILS OF CONTRACT EXPENSES WERE NOT SUBMITTED BEFORE THE ASSESSING OFFICER AND NET PROFIT HAS DECLINED FOR WHICH THE ASSESSEE EXPLAINED THAT PRICE HAS GONE UP. HE ALSO REFERRED THE COST OF INFLATION INDEX FOR THIS PURPOSE, WHICH SUPPORTS THE ASSESSEES CLAIM. THE LOWER AUTHORITIES ALSO HAVE NOT COMPARED THE CASE WITH OTHER ASSESSEES FOR ESTIMATING THE NP RATE, THEREFORE, IN THE INTEREST OF JUSTICE, WE APPLY N.P. RATE @ 5.1% ON TURNOVER OF RS. 14,71,70,861/- AND REMAINING ADDITION IS DELETED. THE ASSESSING OFFICER IS DIRECTED TO CALCULATE THE INCOME AS PER THE ABOVE FINDING. IT IS ALSO NOTED THAT THE FACTS OF THIS YEAR IS DIFFERENT THAN LAST YEAR IN RESPECT OF DEPRECIATION, ROYALTY, LABOUR CESS AND SALES TAX. IT IS ALSO ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 7 NOTED THAT DUE TO NEW PURCHASE OF PLANT AND MACHINERY, THERE IS INCREASE IN DEPRECIATION. IT IS ALSO NOTED THAT THE LABOUR CESS WAS NOT IN A.Y. 2010-11 WHILE THE SAME WAS PAID BY THE ASSESSEE IN A.Y. 2011-12. WE HAVE ALSO NOTED THAT THERE WAS SUBSTANTIAL INCREASE IN SALES TAX AND ROYALTY DURING THIS YEAR IN COMPARISON TO LAST YEAR AND ALL THESE FACTORS RESULTED INTO LOWER NET PROFIT IN SPITE OF THE FACT THAT OVER ALL GROSS PROFIT OF THE ASSESSEE WAS MORE THAN THE LAST YEAR AS PER FOLLOWING CHART. PARTICULARS IN AY 2010-11 IN AY 2011-12 DIFFERENCE DEPRECIATION 58,97,727 82,65,004 23,67,277 SALES TAX 6,54,678 10,75,725 4,21,047 ROYALTY 2,09,2 19 7 ,89,592 5,80,373 LABOUR CESS 0.00 3,13,993 3,13,993 TOTAL 67,61,624 1,04,44,314 36,82,690 IT IS ALSO NOTED THAT ESTIMATION OF TRADING RESULTS IN THE CASE OF CONTRACTOR IS @ 8% OF CONTRACT RECEIPT SUBJECT TO DEDUCTION OF DEPRECIATION AND INTEREST. IT IS ALSO FURTHER NOTED THAT ITAT JAIPUR BENCH IN THE CASE OF DCIT VS RISHABH CONSTRUCTION PVT.LTD IN ITA NO.1081/JP/2011 VIDE ITS ORDER DATED 30-08-2012 FOR THE A.Y.2008-09 HELD THE N.P. RATE OF 8% SUBJECT TO DEDUCTION OF DEPRECIATION AND INTEREST AS REASONABLE IN THE CASE OF CIVIL CONTRACTORS. THE COMPARATIVE CHART AS SUBMITTED BY THE ASSESSEE IN THIS CASE IS AS UNDER:- 8% OF GROSS RECEIPT METHOD- DEPRECIATION AND INTEREST 5.10% NP AS PER FINDINGS OF ITAT IN AY 2010-11 PARTICULARS AMOUNT AMOUNT PARTICULARS AMOUNT AMOUNT 8% OF GROSS RECEIPTS 12400187 5.10% OF GROSS RECEIPTS 7905119 LESS DEPRECIATION -8265004 INCREASE IN DEPRECIATION IN 2011-12 IN COMPARISON TO AY 2010 - 11 (8265004 - 5897727) -2367277 LESS INTEREST INCREASE IN LABOUR CESS IN 2011-12 IN COMPARISON TO AY 2010 - 11 (313993 - 0) -313993 RECEIVED 2745305 INCREASE IN SALES TAX IN 2011- 12 IN COMPARISON TO AY 2010- 11 (1075725 - 654678) -424047 PAID 2461386 INCREASE IN ROYALTY IN 2011-12 IN COMPARISON TO AY 2010 - 11 -580373 ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 8 (789592-209219) NET SURPLUS IN INTEREST (+)28391 9 TOTAL INCOME BEFORE INTEREST 4219429 PROFIT AS PER ESTIMATION 4419103 INTEREST PROFIT SHOWN BY ASSESSEE 4737173 PAID 2461386 FURTHER ADDITION IF ANY 0 RECEIVED 2745305 NET SURPLUS IN INTEREST (+)28391 9 PROFIT AS PER ESTIMATION 4503349 PROFIT SHOWN BY ASSESSEE 4737173 FURTHER ADDITION IF ANY 0 TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LD.AR OF THE ASSESSEE AND ORDERS OF THE LOWER AUTHORITIES AND ALSO THE DECISION AS RELIED ON BY THE ASSESSEE IN THE PRESENT CASE, WE HOLD THAT THE LD. CIT(A) IS NOT JUSTIFIED IN SUSTAINING THE ADDITION OF RS. 34,00,450/- AND THE SAME IS DELETED. THUS GROUND NO. 1 OF THE ASSESSEE IS ALLOWED AND GROUND NO. (I) AND (II) OF THE REVENUE ARE DISMISSED. CONSIDERING ALL THESE RELEVANT FACTS, THE BENCH HOLD THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN SUSTAINING THE PART ADDITION IN BOTH BUSINESS OF THE ASSESSEE. HENCE, APPEAL OF THE ASSESSEE STANDS ALLOWED. 5. FROM THE RECORD WE FOUND THAT THE ASSESSEE IS AN INDIVIDUAL AND CIVIL CONTRACTOR. THE ASSESSEE HAS FILED HIS RETURN OF INCOME ON 30/10/2015 DECLARING TOTAL INCOME OF RS. 46,86,640/-. THE CASE WAS SELECTED FOR SCRUTINY/S 143(3) OF THE ACT ON THE BASIS OF CASS. THE ASSESSEE PRODUCED AUDITED BOOKS OF ACCOUNT, VOUCHERS AND DETAILS AS REQUIRED BY THE A.O.. THE ASSESSEE DECLARED THE NP RATE OF 10.41% OF ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 9 GROSS RECEIPTS SUBJECT TO FURTHER DEDUCTION OF DEPRECIATION AND INTEREST. THE AO FOUND THE BOOKS OF ACCOUNT PROPERLY MAINTAINED AND HAS NOT REJECTED THE BOOKS OF ACCOUNT AND PROVISIONS OF SECTION 145(3) OF THE ACT WERE NOT APPLIED. HOWEVER, THE A.O. MADE GENERAL REMARK AND MADE THE LUMP SUM DISALLOWANCE OF EXPENSES. THE ASSESSMENT WAS COMPLETED U/S 143(3) ON 21/11/2017 BY THE A.O. ON A TOTAL INCOME OF RS. 84,21,640/- AS AGAINST THE RETURNED INCOME OF RS. 46,86,640/- BY MAKING DISALLOWANCE OF RS. 37,35,000/-. AGGRIEVED FROM THE ASSESSMENT ORDER, THE ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) CONFIRMED THE LUMP SUM ADDITION OF RS. 10,00,000/- AND DELETED THE REST OF THE AMOUNT OF RS. 27,35,000/- ON THE BASIS OF HIS FINDINGS GIVEN AT PAGE 13-14 OF HIS ORDER. 6. IT IS EVIDENT FROM THE RECORD THAT THE ASSESSEE HAS DECLARED NP RATE OF 10.41% OF GROSS RECEIPT SUBJECT TO FURTHER DEDUCTION OF DEPRECIATION AND INTEREST WHICH IS MUCH MORE THAN 8% THEREFORE, NO FURTHER TRADING ADDITION SHOULD BE MADE AS HELD IN SO MANY CASES BY THIS TRIBUNAL, AS CITED BY THE LD. AR OF THE ASSESSEE. IN ASSESSEES OWN CASE, THE TRIBUNAL VIDE ITS ORDER DATED 24/01/2018 FOR THE A.Y. 2013-14 HAD DELETED ALL THE ADDITIONS WHEREIN THE NP DECLARED BY THE ASSESSEE WAS AT 8.09% OF GROSS RECEIPTS. THUS, LOOKING TO THE PAST ACCEPTED NP RATE OF THE ASSESSEE, THE NET PROFIT FOR THE YEAR UNDER CONSIDERATION AT 10.41% ITA 353/JP/2019_ SHRI SHASHI KANT KHETAN VS DCIT 10 IS VERY REASONABLE, NO FURTHER DISALLOWANCE IS WARRANTED. ACCORDINGLY, WE DIRECT THE A.O. TO DELETE THE DISALLOWANCE SO UPHELD BY THE LD. CIT(A). 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH AUGUST, 2020. SD/- SD/- LANHI XLKA JES'K LH 'KEKZ (SANDEEP GOSAIN) (RAMESH C SHARMA) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 18 TH AUGUST, 2020 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI SHASHI KANT KHETAN, JHUNJHUNU. 2. IZR;FKHZ @ THE RESPONDENT- THE D.C.I.T., CIRCLE, JHUNJHUNU. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 353/JP/2019) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR